The price of iron ore has jumped overnight as buying pressure returned after an extended two week slump.

At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China rebounded to $US61.70 a tonne, up 2 per cent on its prior close of $US60.50 a tonne.

The gains represented the first positive session in nine as oversupply risks continue to cast a shadow over the market.

Driving the recovery was continued reports of falling stockpiles at key Chinese ports and further analysis of recent data out of Beijing.

On Tuesday, the HSBC flash PMI showed an improvement in the Chinese manufacturing sector and while still weak, the reading came in above expectations.

The news forced most base metals sharply higher in the prior session, but iron ore had been largely unaffected as investors focused on recent news of a lift in supplies and stalling steel demand.